Title: What Happened To Skype: The Rise, Acquisition, and Current State


Skype, once a revolutionary telecommunications app that transformed the way we communicate, has gone through various phases and ownership changes over the years. Founded by Scandinavian entrepreneurs Niklas Zennström and Janus Friis, along with Estonian engineers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, Skype quickly rose to prominence as a game-changer in the field of internet communications. In this article, we will explore Skype's journey from its humble beginnings to its acquisition by Microsoft, and discuss its current state.

The Rise of Skype:

Launched in 2003, Skype offered a seamless platform for making voice and video calls, as well as instant messaging and file sharing, all facilitated through internet connectivity. Its user-friendly interface and free or low-cost communication service attracted millions of users worldwide. Skype's innovative peer-to-peer protocol allowed it to provide high-quality audio and video calls, even over low-bandwidth connections, setting it apart from traditional telephony services.

Acquisition by eBay and Later Microsoft:

In 2005, eBay acquired Skype for $2.6 billion, recognizing its potential to enhance its online marketplace. However, the synergies between an e-commerce giant and a telecommunication platform proved elusive, and eBay sold its majority stake to an investment group in 2009, valuing Skype at $2.75 billion.

In 2011, Microsoft made one of its most significant acquisitions to date, acquiring Skype for a staggering $8.5 billion. This move showcased Microsoft's vision of integrating Skype into its ecosystem, enabling seamless communication across its products, including Windows, Office, and Xbox. The acquisition also aimed to compete with other tech giants that were venturing into similar services.

Integration Challenges and Evolution:

After Microsoft's acquisition, Skype became an integral part of the company's offerings, eventually replacing the Windows Live Messenger service. However, the integration process faced challenges, leading to mixed reactions from users. The changes in the user interface, as well as occasional technical glitches, resulted in some user dissatisfaction.

As technology evolved, so did the demands and expectations of users. New communication tools emerged, offering features such as end-to-end encryption, integration with social media, and customizable functionalities. Skype faced stiff competition from platforms like Zoom, WhatsApp, and Slack, which attracted users due to their user-friendly interfaces and innovative features.

Skype's Current State:

Despite facing competition, Skype still maintains a significant user base. It continues to be a popular choice for online meetings and long-distance communication, particularly among professionals and international callers. However, its once-dominant position has waned, primarily due to the rise of specialized communication platforms and the changing habits of users.

To stay relevant, Microsoft continues to invest in Skype, introducing new features and modernizing its interface. It offers various pricing tiers, including free options, to cater to different user needs. Microsoft has also integrated Skype into its collaboration suite, Microsoft Teams, providing a unified communication experience for businesses and organizations.


Once an industry-leading disruptor, Skype's journey has been marked by both success and challenges. While its acquisition by Microsoft brought about significant changes and integration challenges, Skype continues to be utilized for communication needs worldwide. As the technology landscape evolves, Skype must adapt and innovate to remain competitive and relevant in an increasingly crowded market.

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